Amazon's Devices and Services Unit Faces Renewed Job Cuts Amid Ongoing Restructuring Amazon's devices and services unit, known for products like the Echo smart speakers and Alexa voice assistant, is once again undergoing job reductions. These latest cuts are part of a broader, ongoing effort by the tech giant to streamline operations and rein in costs, following significant layoff rounds that impacted tens of thousands of employees across the company in 2022 and 2023 . The devices unit, which includes the R&D division Lab126, has been a particular focus of Amazon's restructuring . While the exact number of employees affected in this latest round hasn't been widely reported as a massive figure, sources indicate cuts are occurring within this specific division . This follows previous, much larger waves of layoffs that heavily impacted the unit . A Pattern of Downsizing: The 2022-2023 Context The recent job cuts in the devices and services unit cannot be viewed in isolation. They are a continuation of a strategic shift initiated by CEO Andy Jassy to reduce the company's overall headcount after a period of rapid expansion, particularly during the pandemic-driven surge in online sales . In 2022 and 2023, Amazon undertook what were, at the time, the largest layoff rounds in its history, ultimately cutting more than 27,000 jobs across various divisions . These cuts affected not only corporate and technology roles but also specific business units like retail, cloud computing (AWS), grocery, advertising, and significantly, the devices organization . The initial major layoff announcement in late 2022 specifically highlighted the devices organization, including the Alexa team, as a primary area for reductions, with plans to cut around 10,000 jobs . This was followed by further significant cuts in early 2023, adding another 9,000 roles and bringing the total for that period to 27,000 . Challenges Within the Devices Unit The devices and services unit, once championed by founder Jeff Bezos as an engine for future innovation, has faced considerable challenges leading up to and during these layoff periods . Reports have indicated waning morale within the division, partly attributed to the mass layoffs and a perceived weak development pipeline . The unit has also seen key executive departures, including former leader Dave Limp, who stepped down after 13 years . Other long-serving executives from Lab126 and the Alexa team also retired or left the company . Despite popularizing voice assistants, Amazon's Alexa has faced stiff competition from rivals like Google Assistant and Apple's Siri, trailing them in user numbers in 2022 . This competitive landscape, coupled with the high costs associated with developing and maintaining hardware and AI services, likely contributes to the ongoing scrutiny and restructuring within the unit. Smaller, Targeted Cuts Continue While the mass layoffs of 2022-2023 represented a significant workforce reduction, Amazon has continued to make smaller, more targeted job cuts in 2024 and into 2025 . These recent reductions are not limited to the devices unit but have also affected other areas, such as communications and sustainability teams . The latest cuts in devices and services appear to be part of these smaller, ongoing adjustments rather than another large-scale event like those seen previously . This suggests a more granular approach to optimizing teams and resources within specific areas deemed less critical or requiring realignment with current business priorities. Strategic Realignment and Cost Control The overarching theme behind Amazon's repeated workforce reductions is a strategic realignment under CEO Andy Jassy. The company is actively winding down experimental or unprofitable initiatives that do not align with its core business or future growth strategy . Examples include discontinuing services like a "Try Before You Buy" clothing service and a speedy brick-and-mortar delivery program . The job cuts in the devices and services unit, therefore, reflect not just performance challenges within that specific division but also Amazon's broader commitment to reining in costs, increasing efficiency, and focusing resources on areas with the highest potential for profitability and strategic importance in the current economic climate. Looking Ahead The repeated layoffs, particularly within a unit focused on innovation like devices and services, raise questions about the future direction and investment priorities for Amazon's hardware and AI ambitions. While the company continues to develop and sell devices, the reductions signal a more cautious and cost-conscious approach compared to the expansive investment phase seen in previous years. For the employees affected, these cuts represent significant disruption and uncertainty. For Amazon, they are a necessary, albeit difficult, step in recalibrating its massive workforce and operational costs to navigate a changing economic environment and optimize its path forward. The latest cuts in the devices and services unit underscore that this period of strategic adjustment and workforce optimization is far from over .
